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The chief executive of a Labour-run council has been arrested on suspicion of fraud after allegedly giving himself a £26,000-a-year pay rise.

Anthony O’Sullivan, chief executive of Caerphilly council in South Wales, is alleged to have pushed through an increase for senior council officers at a time when other staff were forced to accept a three-year pay freeze.

The claim that the rise, which increased his salary from £132,000 to £158,000, was illegal was investigated by officers from Avon and Somerset Police, who were called in by the Welsh Audit Office (WAO). The public spending watchdog asked police to look